Development Maintenance Strategies-Yasliani.pdf

7/27/2019 Development Maintenance Strategies-Yasliani.pdf

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Investigation on

resen a on o ro ess ona sser a on

Development Maintenance Strategies

Case study: Esfahan Petrochemical Company

byo amma as an

Thesis Advisor

Dr. Gholam-Ali Raissi-Ardali

August 2009www.YSLPM.blogfa.com


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About this research

Strategy in Iranian oil companies and especially in the maintenance field is a new

conce t

It seems that there is no documented or published study about maintenance

recent advances in business management and technologies.

or many years as een e ron er n ran an pe roc em ca comp exes o

develop management systems. In the maintenance field, EPC has been as pilot and

benchmark references for certain petrochemical complexes especially for the newly

'.

for all Iranian petrochemical complexes to deploy recommendations

This research is about Maintenance Strategies Development Model and not

focuses on the only technical dimension of the maintenance

MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009


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Introduction (1) Petrochemical and Maintenance

Petrochemical Industry plays a significant role in Irans economy, it supplies feedstock

,

petrochemical products, generates jobs and is an important source for obtaining foreign

currency.

Petrochemical industries need a reliable continuous process in order to reach their

economic goals. Any interruption due to equipments failure (or other elements) would

cause a break in manufacturin line or factor shutdown. Therefore maintenance is one

of the main parts of organization in each petrochemical plant



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Introduction (2) Maintenance at strategic level

Maintenance strategies (MS) are needed because equipments, building and plant

erformance influence ualit , costs and customers need. (Wilson, 2002)

Over the past twenty years maintenance has changed, perhaps more so than anyother mana ement disci lines Moubra 1997 .

The changes in the oil plants are greater due to use of advance technology

equipments. These equipments which have complex design need new maintenance

techniques and skillful persons.

The business demand is increasing and maintenance managers are under more

pressure to improve professionalism, discipline and cost and benefit. Therefore

maintenance needs high level management skill in order to maximize production and

minimize loss and waste.

Maintenance look likes as an administrative technique rather than a technical one



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Introduction 3 Problem Statement

The most and common problems in petrochemical companies are making decisionsabout the maintenance organization, resources, implementing proper systems,

outsourc ng , asset strategy an ma ntenance management strategy

In EPC, a maintenance self assessment at 2007 revealed that EPC maintenanceperformance is not sufficient

These encouraged me to use my lessons learned during the MSC program (such as

EPCs maintenance self assessment results 2007

the problems.


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Introduction 4 Thesis H othesis

The hypothesis of this research is that although traditionally asset strategy and

development program but the contribution of the following components play significant

roles in a maintenance strategy development program :

Changes (in maintenance world)

Maintenance Objectives

Maintenance practices

Benchmarking, auditing, self assessment Asset strategy

Maintenance mana ement strate

Setting Targets

Co-ordination of the Policies and procedures

And in a traditional maintenance strategy development there is not a balanced

contribution of the mentioned eight components.



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Introduction 4 Research's tasks

The first task is to illustrate that all the eight mentioned components play important

domain.

The second and the main task is that investigate how these component have beenconsidered in developed maintenance strategies in EPC and explore why some of

them has received more or less concentration and why differs from theory.

'

would be ranked from the most to least involvement in developed maintenancestrategies program for EPC.



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Literature Search

I had a short look at maintenance and strategies definitions and business strategy's

influence on the maintenance strate ies.

I reviewed and categorized the maintenance leaders and other researcher's findings about

existing theories of the following components of the model.

Maintenance definitions

Changes (in maintenance world)

ec ves an arge s

Maintenance practices

Benchmarking, audit and self assessment

Asset strategy

Maintenance management strategy

Setting Coordinated maintenance Policy and Procedures

resources nc u e oo s, r c es, n erne resources an e c are s u e


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Research MethodologySources of information and Method of data gathering

The primary data was gathered through questionnaires, interview and observation

research techniques.

The secondary data about maintenance strategy are extracted from a wide range of

resources which alread ublished and available in the ublic domain such as

books, journals, E-resources, internet. This information are categorized and

classified in sort of topics with a complete Harvard referencing for them.

ValidityThe prepared questionnaire was reviewed by following peoples:

.

2. Five maintenance experts

3. Four manager including Maintenance, Engineering, Production, Contracting

mana ers. who have MBA de ree from the Cal er Universit

Reliability

a s ca ac age or oc a c ence s use o ca cu a e ron ac s

alpha for reliability


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Research Methodolo Phases of the research

Phase one (questionnaire)

Studied model consist of 8 components. For each component 5 factors are defined(40 questions)

The prepared questionnaires were distributed( by Email and Hard copy) to themaintenance, production, engineering managers and experts in EPC. Out of 55

(distributed questionnaires), 40 questionnaires were completed (73%). This high

response rates certify the whole study population sufficiently.

For each factors and components the relevant Frequency (F), Percentage (p), Mean andStandard Deviation (St Dev) are calculated.

When 1.00 mean < 1.80 Factor or Component is Not Concentrated (NC)

The calculated means were classified in five levels as follows

When 1.80 mean < 2.60 Factor or Component is Somewhat Concentrated (SC)

When 2.60 mean < 3.40 Factor or Component is Fairly Concentrated (FC)

When 3.40 mean < 4.20 Factor or Component is Very Concentrated (VC)

When 4.20 mean 5.00 Factor or Component is Extremely Concentrated (EC)


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Phase two (interview)

Consists of fifteen semi structured interview.

The factors that relevant calculated mean (phase one findings) was less than 2.6 orwas grea er an . were scusse n or er o cer y e resu s.

Furthermore, I obtained complementary data through open ended questions duringthese interviews

Phase three (observation)

as a trace ana yz ng an persona o servat on o t e s ma ntenance currentstatus.

I looked at the existing maintenance procedures in EPC and the last four yearsmaintenance indicators.

I was looking for the steps of the developed maintenance strategies in EPC basedon the described model in this thesis


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The methodological approach of the research)

TERVIE 57 Resources

HE

LICOP

ENANCE

EMAIN

UR

EOFT

BIGPICT


HA

V


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Results and Analysis Questionnaire

Demographic findings show research is conducted in the environment that have the

following attributes: are maintenance stakeholders, well educated, well experienced,

Table 4-3 Table 4-4

Respondent's Department distribution Respondent's job distribution

.

Department N Percentage Job N Percentage

Maintenance 16 40.0% Expert 15 37.5%

Production 7 17.5% Supervisor 5 12.5%

Engineering 5 12.5% Middle manager 13 32.5%

Management 7 17.5% Manager 5 12.5%

HSE, R&D, Planning 5 12.50% Top manager 2 5%

Total 40 100.00% Total 40 100.00%

- -

Respondent's education distribution Respondent's work experience distribution

Degree N Percentage Work Experience (Years) N Percentage

Diploma 0 0.0% Less than 5 1 2.5%

High national diploma 2 5.0% 6-10 1 2.5%

Bachelor of science 31 77.5% 11-20 23 57.5%


as er egree o sc ences . - .

Phd 0 0% More than 30 0 0.0%

Total 40 100.00% Total 40 100.00%


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EPC's maintenance strategies are structured by considering changes in the maintenance world

Components No 1: (This is a sample of work which is done for all the other 8 components)

Key elements (Factors)

Stronglya

gree

Agree

Neutral

Disagree

strongly

disagree

Mean

Concentration

level

1EPC has employed new expectation of the maintenance (HSE) as main driver of

developing maintenance strategy?F 1 16 13 9 1

3.18 FCP 2.5% 40% 32.5% 22.5% 2.5%

2

New concept of the equipment failures (six failure patterns) is considered as a part of

maintenance strategy development in EPC to reduce the maintenance cost and

F 4 10 16 9 1

3.18 FC

increase availability P 10% 25% 40% 22.5% 2.5%

3Hazard studies, failure modes, effects analyses are used as support tools in developing

EPC's maintenance strategy to increase equipments performance

F 0 4 17 16 32.55 SC

P 0% 10% 42.5% 40% 7.5%

Major shift in organizational thinking towards participation, team-working and F 2 15 13 9 1

4 flexibility is considered in developing EPC's maintenance strategy to increase

equipments performance

3.2 FCP 5% 37.5 32.5% 22.5 2.5%

5

Computer systems and software are considered as an important factor in developing

EPC's maintenance strategy to increase maintenance performance

F 13 24 3 0 0

4.25 ECP 32.5% 60% 7.5% 0% 0%

10.0%

34.5%31.0%

21.5%

20.0%

30.0%

40.0%

.

0.0%

.

Strongly agree Agree Neither agree

nor disagree

Disagree Strongly

Disagree


Are changes concentrated in EPCs MS

development


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NO Components Mean Std DevConcentration

level

Models components concentration level in EPC

1 EPC's strategies are structured by considering changes in the maintenance world 3.27 0.613 FC

2 EPC has defined appropriate maintenance objectives. 3.63 0.343 VC

3EPC has employed the integrated maintenance practices based on his maintenance

3.01 0.696 FC.

4EPC carry out self assessment, auditing and benchmarking program to measure

deviation of the objectives or identify initiate point for improvement.3.28 0.102 FC

5 EPC has assets strategy and the selected tasks are come form the strategies 3.52 0.179 VC

6 EPC has appropriate maintenance management strategy 3.34 0.464 FC

7 EPC has set maintenance long and Short term targets. 3.46 0.175 VC

8 EPC has coordinated maintenance policies. 3.44 0.135 VC



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Results and Analysis InterviewQuestions with the means less than 2.61. Question3: Hazard studies, failure modes, effects analyses are used as support tools in developing

EPC's maintenance strategy to increase equipments performance (Mean=2.55, St Dev =0.78)

2. Question13: EPC use maturity status concept (of the stage of the development maintenance

practices) to determine required maintenance practices (Mean=2.58 St Dev =0.71).

3. Question14: EPC's maintenance strategy development program has focused on the RCM to

improve equipment and plant performance (Mean=2.38 St Dev = 0.98).

4. Question15: EPC's maintenance strategy development program has focused on the TPMfor people

development systems. (Mean=2.60 St Dev = 0.78)

5. Question26: In EPC, maintenance has a business culture and is considered as core competency of

business (Mean=2.55 St Dev = 0.88)

Questions with the means greater than 4.2

1. Question 5: Computer systems and software are considered as an important factor in developing

EPC's maintenance strategy to increase maintenance performance (Mean=4.25 St Dev =0.95)

2. uestion 8: EPC's maintenance ob ective is to achieve a lon lifetime for e ui ment with

Interview findings certified the results and confirmed that respondents did not

preserved level of product quality and maintenance cost (Mean=4.2 St Dev =0.52))


m sun erstan or m s nterpret t e quest ons


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Results and Anal sis Interview

I obtained complementary data through the open ended questions. Findings are categorized

as follows:

1. Training maintenance people

2. Self assessments and improve current strategies3. Motivation and strategies

4. Effective maintenance through fault analysis

5. Systematic review to identify stakeholders needs( and changes)

. ann ng to mprove ma ntenance per ormance

7. Change maintenance perspective in the organization from a simple maintenance

department to the business function

. app ng new ma n enance process



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Results and Analysis Observation

I looked at the existing maintenance procedures in EPC and the last four years maintenance

indicators. In addition, I was looking for steps of the developed maintenance strategies in

.

1. Maintenance organization

2. EPC maintenance history'.

4. EPC's Maintenance strategic plan Maintenance vision

Maintenance mission

Long term goals Current strategies

Existing action plans

. x s ng wea ness an rea s

6. Strong points and opportunities

7. Prioritize equipments and relevant task

.

9. EPCs maintenance indicators Cost indicators

E ui ments erformance indicators


Systems performance indicators


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ConclusionProve research hypothesis and rank components

Based on the questionnaire's finding which is supported by two other data

collection instruments, it could be concluded that the research's hypothesis is

proven due to the discussed components received a variety of the marks and graded

in two different levels Fairly Concentrated and Very Concentrated.

EPC has the most attention on the maintenance objectives and the least attention to

the maintenance ractices.

Of 40 completed questionnaire, during interview and observation I can not find any

development that I missed in the studied model. Most discussed factors in the open

ended questions during interview or added in the questionnaire by the respondents

.



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Conclusion

For each components the reason that it is placed in the fairly or very concentrated level

and how is defer or is the same with theory will be discussed in detail, but at this point

the explanation that steps of developed maintenance strategies in EPC differ from the

theory are as below:

or many years a een a su s ary company or at ona etroc em ca

Complex (NPC). It caused EPC followed NPC's policies even in the maintenance

section. NPC defined the budget, maintenance indicators and etc. The most important

ng s a a cer a n ma n enance as s an po c es are cop e rom e o er

petrochemical plants and have executed for many years.

EPC had been a overnmental com an for man ears. In a overnmental com ancost is not as important as a private company. It affected all the resources such as

man-hours, spare parts and etc. Therefore planning had been lost its usage.

av ng a c ear s ra egy, m ss on an v s on as een more concen ra e rom e me

that EPC was disconnected from NPC. Before that time, it caused EPC concentrated

on the only two objectives that were availability and reliability with no (or less) cost


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Conclusion Component 1

Changes in the maintenance world (Mean=3.27 Concentration Level=FC)

In EPC

EPC's strategy are fairly according to the current theories regarding to the changes in

the maintenance world.

, ,

support tools to develop maintenance strategy

Why

EPC was a sub company of the NPC for many years and received changes hints

from the mother company in limited.

EPC was a new constructed company with the highest technology (at that time) and

therefore the needs for failure modes and effects analyses was not sensed

10.0%

.31.0%

21.5%

3.0%10.0%

20.0%

30.0%

.

0.0%


nor disagree

Disagree Strongly

Disagree

Distribution of answers frequency


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Conclusion Component 2Maintenance objectives (Mean=3.63 Concentration Level=VC)

In practical EPC has covered most of the main factors in the theory regarding the

maintenance ob ective

The research's findings certified that availability, reliability and long life time for

equipments through the cost effective planning and control all type of the resources

has been considered as the main ob ective of the EPC's maintenance.

Maintenance objective are aligned to the companys objective.

Why

EPC has focused to improve availability and reliability, optimizing equipment lifeas main objectives

47.0%50.0%

,

objective comes from up to down

11.0%

36.0%

6.0%10.0%

20.0%

30.0%

40.0%

0.0%

0.0%

Strongly agree Agree Neither agreenor disagree

Disagree StronglyDisagree



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Maintenance practices (Mean=3.01 Concentration Level=FC)

In EPC

EPCs ma ntenance strategy eve opment not meet t e ava a e current

theories regarding the matter.

The three factors RCM, maturity status concept of the practices and TPM received

RCM needs a good team working and TPM needs a well organized co-operation but

Whythe lowest numbers in this section.

the relevant cultures are not created in EPC yet.

EPC from 1997 till 2007 had an interruption in its maintenance development

program.

38.5%45.0%

EPC has no specific maintenance benchmarking, audits ad self assessments to

reveal the current practices performances and compare with the leaders in this area.

29.5%

19.5%

8.5%10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

.

.

0.0%

5.0%





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Self assessment, auditing and benchmarking (Mean=3.28 Concentration Level=FC)

In EPC

Self assessment, auditing and benchmarking are Fairly Concentrated

Continuous and systematic benchmarking and self assessment program has not

Why

EPC benchmarked his erformance with other PC's subsidiar com an in a

limited range. Before implementing CMMS, indicators calculations had been very difficult and

.

Less concentration are made to define standard definitions of the maintenance key

elements and areas.41.0%45.0%

9.0%

31.0%

17.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2.0%

0.0%

5.0%





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Conclusion Component 5Assets strategies (Mean=3.52 Concentration Level=VC)

EPC has covered most key factors regarding asset strategy. Assets strategies are very

EPC has prioritized the equipments and it has as systematic approach.

The selected tasks also are made based on the equipment's priority.

Why

EPC uses preventive, predictive, corrective and improvement maintenance to

improve assets performance.

e ma n reason s a asse s ra egy n e mos compan es as e mean ng same as

maintenance strategy and is one of the areas which received more effort.

This part has a technical dimension which is handled by to the maintenance experts

44.0%50.0%

so t automat ca y rece ves more attent on.

Assets are directly related to the production therefore has an important part in

company's profit.

10.5%

33.0%

11.5%20.0%

30.0%

40.0%

1.0%

0.0%

.


nor disagree

Disagree Strongly

Disagree



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Maintenance management strategy (Mean=3.34 Concentration Level=FC)

In EPC

Although EPCs maintenance has business elements such as policies, aims and

objectives, a resource structure, an organization structure, procedures,

documentation and computer systems but findings reveal that EPCs maintenance

Why

does not have a business culture and maintenance performs as a functional

department.

EPC stepped on the way of changing company's culture from a governmentalcompany to the private one but it is not completed yet

39.0% 39.5%

30.0%

35.0%

40.0%

45.0%

6.5%10.5%

4.5%5.0%

10.0%

15.0%

20.0%

25.0

.


nor disagree

Disagree Strongly

DisagreeDistribution of answers frequency


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Conclusion Component 7Setting long and Short term targets (Mean=3.46 Concentration Level=VC)

EPC has set maintenance long and short terms goals according to the exciting theories

T e goa s are set y t e ma ntenance top managers an ave up to own process.

EPC has set its short and long term maintenance goals in order to direct the effort of

maintenance people toward the major targets.

Why

EPCs maintenance indicators prove that objectives are made up of attributes, unit of

measures, a quantity and a time unit.

a e company eve , as e ne s ong an s or erms arge s an gu e a

departments to define their targets and there is a committee to evaluate departmentaltargets and their links to the company's objectives.

60.0%

,

prioritizes of the companys needs and then evaluates and defines how the maintenance

functions should respond and be organized in supporting those needs

.

33.5%

10.5%20.0%

30.0%

40.0%

50.0%

.

1.0%

0.0%

10.0%


nor disagree

Disagree Strongly

Disagree



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Coordinate maintenance policies (Mean=3.44 Concentration Level=VC) Although EPC has well organized exciting policies but EPC has not paid attention to

, ,

changing and improving is not have a systematic process.

EPC has certain written procedures and checklists which are available through'

Wh

. ,

gathered experience and analysis results in order to ensure that critical tasks are

performed in a proven and standardized way.

This was maintenance top managers duty but previous maintenance top managerswere not familiar with the importance of this component.

60.0%

an appropriate CMMS. This tools is infrastructure to define, integrate, coordinate

and evaluate certain policies and them.

.

33.5%

10.5%20.0%

30.0%

40.0%

50.0%.

.

1.0%

0.0%

10.0%


nor disagree

Disagree Strongly

Disagree



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EPC's current situation

According to the findings it could be concluded that EPC has fairly covered a typical

maintenance strategy development program components. It means in some areas there

are certain gaps with the world class.

Following components are sorted in sequences which need more concentration.

1. Practices

2. Changes in the maintenance world

. e assessment, au t ng an enc mar ng

4. Maintenance management strategy5. Coordinate policies

.

7. Asset strategy

8.Maintenance objective



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Recommendations

The researcher believes that only balanced and chain involvement of the eight

mentioned components would lead to the enhancement in the maintenance

performance. Therefore for all components appropriate action plans are needed or the

exciting activities should be actuated toward the available theories at the world class

level. The following action planes are recommended to move EPCs maintenanceper ormance n t e rect on o wor c ass.

Components Required Action Plan

(RCM)Asset Strategy

Maintenance objective

Balanced Score Card

(BSC)

Short and long term targets

Maintenance management strategy

Coordinate olicies

Self assessment, auditing and benchmarking Benchmarking, Auditing and self

assessment ProcessChanges in the maintenance world

Ma ntenance management strategy Tota Pro uct ve Ma ntenance

(TPM)Coordinate policies


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Future research im lications

I recommend that future MS students conduct detail studies based on the findings of the

ma n enance a e s ra eg c eve n s s u y. e s u e ma n enance s ra eg es

development model in this thesis could be completed and adopted (through more

studies) for the Iranian oil companies as a powerful instrument to evaluate and.

I think in the future studies the most efforts should be awarded to the following points:

.

2. A model for selecting practices based on the maturity status concept.3. Develop a model for self assessment, auditing and benchmarking program to

measure ev a on o e o ec ves or en y n a e po n or mprovemen .

4. How to connect strategies updating structure to the changes in the

maintenance world

5. How maintenance culture could be shifted to the business culture



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Future research im lications

,

recommend that they reconcile the described model in this study with the exciting

strategic management models such as offered model by David Hunger (2006).

Moreover during this study I convinced that balance score card BSC which is a

owerful tool to monitor control and de lo strate ies could be used in the

maintenance strategy development program with a certain changes. For instance

instead of the four financial, process, customer, growth and learning perspective we can

set other appropriate perspectives related to the maintenance.



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Thanks for your attention


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